Pricing behaviour and the introduction of the euro: evidence from a panel of restaurants

Eugenio Gaiotti and Francesco Lippi

Chapter 3. in The Euro, Inflation and Consumer’s Perceptions, 2008, pp 71-107 from Springer

Abstract: Abstract In the heated debate on the alleged inflationary effects of the introduction of the euro, the Italian media and consumers’ associations frequently reported extraordinary price increases. Among those, the ones recorded by restaurants gave rise to great controversies. According to a survey conducted in an Italian region, one third of citizens blamed restaurants for excessive increases, a percentage second only to the share of respondents who blamed food prices.2 Various newspaper articles reported anecdotal evidence allegedly showing that the cost of a meal in a restaurant or a pizzeria had increased by 80–100 per cent following the introduction of the euro.3 It became almost common wisdom to argue that price setters had taken advantage of the psychological conversion of 1,000 lire into 1 euro, which amounted to a doubling of the price:4 “everybody knows that one euro is now worth 1,000, not 2,000, lire”.5

Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Pricing Behaviour and the Introduction of the Euro: Evidence from a Panel of Restaurants (2005)
Working Paper: Pricing behavior and the introduction of the euro: evidence from a panel of restaurants (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-78370-1_4

Ordering information: This item can be ordered from
http://www.springer.com/9783540783701

DOI: 10.1007/978-3-540-78370-1_4

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().